"Policymakers do still have sufficient tools at their disposal, and are sufficiently well informed and pragmatic to make sensible decisions. The prospect of a second recession induced by policy error should be mitigated," according to Callow.

The world's major central banks still have scope for stimulating demand despite high debt levels, while several large emerging economies still have "substantial scope for fiscal stimulus if required" but for many emerging countries, inflation is a bigger concern than new sources of stimulus, he explained.

"For the mature economies, however, large deficits suggest that pro-active fiscal policy has reached the limits of what is possible given current public debt levels," Callow said.

"With interest rates close to the zero bound, this leaves central bank asset purchases as the main remaining stimulus tool."

The recent publication of stress test results in Europe is also a positive, according to Callow.

"Our view that Europe will be able to avoid a double dip has also been supported by the market reaction to the publication of the EU banking sector stress tests," he wrote.

"The stress test exercise has proved positive, not least because it provided a mass of detailed information on a broad swathe of banks. The tests also suggested that the capital adequacy of the vast majority of these institutions was considered sufficient," Callow added.